Location: Juneau City and Borough, AK | Metro: Juneau City and Borough, AK
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,320 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,450 | $272,241 | 0.53% | F |
| 2BR | $1,900 | $371,867 | 0.51% | F |
| 3BR | $2,500 | $501,455 | 0.5% | F |
| 4BR | $3,040 | $644,296 | 0.47% | F |
| 5BR | $3,526 | $708,506 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 99801 in Juneau, AK, reveals key insights into investment potential. Using the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1,820 per month for fiscal year 2026, the annualized income would be $21,840. Against the median home value of $476,934, this translates to an implied gross yield of approximately 4.6%. This calculation is based on the formula for gross yield: (Annual Income / Property Value) * 100.
In contrast, the market rent, as indicated by Zillow's ZORI index, stands at $2,011 per month for a 2-bedroom unit. Annualizing this figure gives us $24,132, resulting in an implied gross yield of about 5.1% when compared to the median home value. The difference between these yields highlights the premium landlords can potentially earn by renting outside of Section 8 programs.
Given the renter density of 35.1%, it's important to note that nearly one-third of the population might rely on rental assistance, making the lower Section 8 rent scenario more prevalent. Additionally, the Days on Market (DOM) statistic of 44 days suggests that properties are rented quickly, indicating a strong demand for rental housing. However, this does not necessarily translate into higher market rents being consistently achieved.
The gross yield derived from the FMR is more realistic for the majority of landlords in ZIP 99801 who participate in the Section 8 program. While the higher market rent yield seems attractive, achieving it depends on factors such as the landlord's ability to attract non-assisted tenants, the condition and location of the property, and the overall supply and demand dynamics in the local rental market. For those considering Section 8 participation, the 4.6% gross yield is a solid starting point for their investment calculations.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.